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Birla Tyres’ Balasore plant in Odisha is expected to restart production activities from the next fiscal, said Anurag Choudhary, CMD & CEO, Himadri Speciality Chemical.
Kolkata-based Himadri Speciality Chemical, India’s largest speciality carbon black maker, is one of the owners of Birla Tyres Ltd. Himadri and Dalmia Bharat Refractories had participated in the corporate insolvency resolution process of the tyre maker and jointly acquired the company for ₹306 crore.
The Kolkata bench of the National Company Law Tribunal (NCLT) in October last year approved the resolution plan for the acquisition of BK Birla group firm Birla Tyres under the Insolvency and Bankruptcy Code.
Choudhary said Himadri and Dalmia Bharat Refractories have planned an additional capital expenditure in Birla Tyres for modernisation and revamping of the Balasore plant.
“We have not finalised yet on the amount of additional capital expenditure in Birla Tyres. We will decide in the next six months,” Choudhary told businessline.
“The Balasore plant needs to be modernised since it is an old one. Currently, the plant is closed. We expect that from the next financial year, the factory will restart production activities. The current daily capacity is around 400 tonnes. First we have to utilise the capacity, which will take time,” he informed.
Himadri Speciality Chemical’s balance sheet continued to remain strong with a positive cash balance of ₹255 crore. “This gives us the strength and the flexibility to further expand our businesses in the last few quarters. This accomplishment underscores our commitment to disciplined capital deployment and efficient working capital management,” Choudhary said.
The company’s consolidated net profit for the second quarter this fiscal grew 34.86 per cent year-on-year at ₹135.70 crore, while revenue was up 13.18 per cent y-o-y at ₹1,136.92 crore during the period.
The company completed its first export shipment of liquid coal tar pitch in October, paving the way for a large global liquid coal tar pitch market,” the CMD said.
“We have started exporting the liquid coal tar pitch, which is a big thing for us. We will be exporting to the Middle East, Australia and South Africa,” he added.
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